WTO's trade facilitation agreement to cut transaction costs, boost exports: FIEO

New Delhi: The WTO's trade facilitation agreement is expected to reduce transaction costs and promote exports, trade body FIEO said on Thursday.

The agreement, which seeks to ease customs norms, came into effect yesterday with two-thirds of WTO members ratifying the pact.

Federation of Indian Export Organisations (FIEO) President S C Ralhan said that the pact would also harmonise global rules for the movement, clearance and release of goods.

"It will make trade-related administration easier and less costly, thus helping to provide an important and much needed boost to global economic growth," he said in a statement.

Trade facilitation agreement (TFA) will also require setting-up of enquiry points which will bridge the information gap, particularly for small and medium companies, he said.

"The rationalisation of the charges levied by different agencies will help in reducing the transaction cost," he said.

However, he added that TFA should not be expected to address rising protectionism around the world.